Midas Funds

Fund Strategies and Market Commentaries
As of June 29, 2016

In seeking its investment objective of capital appreciation, Midas Magic focuses primarily on large companies, with a broad orientation towards conservatively priced value stocks and selected growth issues. The Fund seeks companies with strong operations showing superior returns on equity and assets with reasonable valuations.  Relative to the S&P 500, the Fund’s portfolio currently is heavily over-weighted in financial services and to a lesser degree in consumer cyclical companies, and is underweight in economically sensitive and defensive industries.  Portfolio holdings of Inteliquent, Inc. and McKesson Corporation have recently added to the Fund’s returns, offset to some extent by declines in its holdings of asset management companies.  The Fund had eliminated leverage until the Brexit sell-off, when the Fund added a number of UK financial businesses to the portfolio after their stocks prices collapsed under strong selling pressure.  Anticipating further market volatility as the presidential election nears, the Fund currently anticipates reducing its investments generally, and in particular financial services companies, and moderating concentrated positions.

Midas Fund searches for investments in quality companies producing precious metals and other natural resources with a growth component.  Leading performance in the Fund’s portfolio recently have been the Fund’s holdings of Resolute Mining Limited, which reported solid recent mine production and cash flow, and Buenaventura Mining Company Inc., which had previously fallen to depressed levels.  Shares of a platinum exploration and development stage company, which had been performing well, slumped recently when the company issued more equity to fund underground development and ramp-up mine production.   As gold’s price rose to over $1,300 per ounce, the Fund began seeking a more defensive posture in anticipation of a potential consolidation of the market at these near term higher levels, should the market re-assess the favorable Brexit vote and the potential for further Federal Reserve rate hikes.  Currently holding some reserves in cash and following its recent merger with Midas Perpetual Portfolio, Midas Fund may seek to re-position its portfolio in the third quarter by adding to some current stockholdings and introducing new names into the portfolio. Companies the Fund anticipates adding to its portfolio will normally be those with promising exploration potential, expanding production profiles, increasing cash flow, and/or other special growth features.

Cautionary Note Regarding Forward Looking Statements

This release may contain certain “forward looking statements” as defined under the U.S. federal securities laws. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “will,” and similar expressions identify forward looking statements, which generally are not historical in nature. Forward looking statements are subject to certain risks and uncertainties that could cause actual results to materially differ from a Fund’s historical experience and its current expectations or projections indicated in any forward looking statements. These risks include, but are not limited to, equity securities risk, corporate bonds risk, credit risk, interest rate risk, leverage and borrowing risk, additional risks of certain securities in which a Fund invests, management risk, and other risks discussed in each Fund’s filings with the Securities and Exchange Commission. You should not place undue reliance on forward looking statements, which speak only as of the date they are made. Each Fund undertakes no obligation to update or revise any forward looking statements made herein. There is no assurance that each Fund’s investment objectives will be attained.